A native band in central Manitoba has come to an agreement with the province over compensation for a hydroelectric dam built more than 40 years ago.

The Grand Rapids generating station, completed in 1968, swallowed 1,157 square kilometres of land, including territory belonging to the Mosakahiken Cree Nation, a reserve east of The Pas, Man.

An official agreement on financial compensation, allocation of land and provisions for joint natural resources management was signed Thursday by Aboriginal and Northern Affairs Minister Oscar Lathlin, Chief Philip Buck, and Manitoba Hydro representative Ruth Kristjanson.

"Our government is determined to continue the important work needed to resolve outstanding issues resulting from previous hydroelectric development," Lathlin said in a release.

Thursday's agreement is the final one related to the dam's reservoir — the largest in Manitoba Hydro's system.

The Chemawawin Cree Nation, whose community was relocated to accommodate the reservoir, and the communities of Moose Lake and Easterville have already reached compensation agreements with the province.